#USDCAD @ 131514 is displaying a healthy correction after remaining in the grip of bulls for around a month, Pivot Orderbook analysis

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• USD/CAD is displaying a healthy correction after remaining in the grip of bulls for around a month.
• The corrective move is expected to drag further to 2.6% Fibo retracement at 1.3100.
• Advancing 20 and 50-EMAs indicate more upside ahead.

The pair currently trades last at 1.31514.

The previous day high was 1.3208 while the previous day low was 1.3123. The daily 38.2% Fib levels comes at 1.3176, expected to provide resistance. Similarly, the daily 61.8% fib level is at 1.3156, expected to provide resistance.

The USD/CAD pair has witnessed a time-based correction after failing to sustain above the crucial resistance of 1.3200 on Thursday. The asset is declining modestly and may find a cushion sooner as the broader context is extremely bullish. At the press time, the major surrendered the cushion of 1.3150.

After remaining a little short of recapturing the six-week high at 1.3224, the asset is displaying signs of momentum loss but that doesn’t warrant a bearish reversal. As the major has displayed a juggernaut rally, the correction could extend further to near 23.6% Fibonacci retracement (placed from August 11 low at 1.2728 to Thursday’s high at 1.3208) near 1.3100.

Advancing 20-and and 50-period Exponential Moving Averages (EMAs) at 1.3110 and 1.3050 respectively indicates more upside ahead.

Meanwhile, the Relative Strength Index (RSI) (14) has shifted into the bullish range of 60.00-80.00, which adds to the upside momentum filters.

A corrective move to near 1.3100 will be a bargain buy for the market participants, which will drive the asset towards a six-week high at 1.3224, followed by the round-level resistance at 1.3300.

Alternatively, a break below the August 23 low at 1.3012 will drag the asset towards 50% FIbo retracement at 1.2972. A breach of the latter will unleash the loonie bulls for more downside towards the August 25 low at 1.2895.

Technical Levels: Supports and Resistances

USDCAD currently trading at 1.3152 at the time of writing. Pair opened at 1.3155 and is trading with a change of -0.02 % .

The pair remains strongly bullish on the daily timeframe. It trades above its 20 SMA @ 1.2947, 50 SMA 1.2927, 100 SMA @ 1.2862 and 200 SMA @ 1.2775.

The previous day high was 1.3208 while the previous day low was 1.3123. The daily 38.2% Fib levels comes at 1.3176, expected to provide resistance. Similarly, the daily 61.8% fib level is at 1.3156, expected to provide resistance.

Note the levels of interest below:

• Pivot support is noted at 1.3116, 1.3077, 1.3032
• Pivot resistance is noted at 1.3201, 1.3247, 1.3285

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